History
In 2004 the Kuwait Government permitted the establishment of the non-governmental airline firm, essentially ending Kuwait’s 50-year old dependency on Kuwait Airways. The 2004 Emiree Decree #89 established Jazeera Airways as the first airline to enter this newly liberalized industry.
Jazeera Airways raised its capital of KD 10 million (USD 35 million) through an initial public offering in Kuwait that was oversubscribed 12 times. The capital was doubled to KD 20 million (USD 70 million) in 4Q 2007 by a second offering to existing shareholders. In May 2009, a share distribution of 10% effectively increased the capital to KD 22 million (USD 77 million).
About 26% of the airline is owned by two companies affiliated with the Boodai Group: Wings Finance (9%) and Boodai Projects (17%). 6-7% is also held by Jasem M. al-Musa Trading, a company owned by a former Minister of Public Works in the first Kuwaiti government established after the end of Iraq's invasion of Kuwait. About 17.5% is held by two real estate companies, and the rest is publicly held.
Jazeera Airways started operations on 30 October 2005 with a fleet of brand new Airbus A320 aircraft, all leather seats, flying to several destinations in the Middle East.
In Q2 2009, UAE authorities requested the airline to terminate its hub operations at Dubai. This step was seen as a support to Dubai's upcoming launch of its own low-cost airline, FlyDubai. Jazeera changed its operation model by concentrating on its Kuwait hub and trying to launch a second hub somewhere else. By Q2 2010, the new model proved unprofitable as the Kuwait hub suffered from overcapacity. The airline changed its plans by cancelling many stations and parking some aircraft which were later returned to lessor.
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